CryptoBlox Signs Share Purchase Agreement to Acquire Blockchain Fintech
Strong share price allows the Company to secure a strategic and accretive acquisition to fuel growth and complete its Diversified Blockchain Ecosystem
Vancouver, B.C., March 05, 2024 (GLOBE NEWSWIRE) — CryptoBlox Technologies Inc. (the “Company” or “CryptoBlox”) (CSE: BLOX) is pleased to announce that it has entered into a share purchase agreement, dated effective March 4, 2024 (the “Agreement”), to acquire (the “Acquisition”) Blockchain Fintech Unipessoal LDA (“Blockchain Fintech”), a Portuguese corporation that develops blockchain-based financial technologies that help onboard “average users” to the blockchain economy. Pursuant to the Agreement, the Company will acquire 100% of the outstanding shares of Blockchain Fintech for 20,000,000 common shares of the Company, having a deemed value of $11,000,000.
Closing of the Acquisition is subject to customary closing conditions for a transaction of this nature, including Canadian Securities Exchange approval and the Company’s satisfaction with the results of its due diligence. The Acquisition was negotiated at arm’s length and will not result in a change of control or the creation of a control person of CryptoBlox. A finder’s fee of 1,600,000 Common Shares will be payable on closing.
Taking Advantage of Surging Share Price
On September 28, 2023, the Company announced the execution of a letter of intent with Blockchain Fintech, which contemplated a strategic partnership in which CryptoBlox would acquire the rights to Blockchain Fintech’s digital asset license then under development (the “License”). As the Company worked through due diligence, its shares underwent a 700% increase in value, which has enabled the Company, through share-based consideration, to acquire the entire Blockchain Fintech business instead of only the rights to the License. Building on the precedent set by the Acquisition, the Company hopes to be able to realize on other accretive acquisitions going forward, by taking advantage of its strong share price.
CryptoBlox’s Blockchain Ecosystem
The Company’s Blockchain Ecosystem Strategy, outlined in detail in the Company’s news release dated January 3, 2024, is comprised of three major divisions. The Company hopes that the Acquisition will complete the final piece to this vision, by strengthening and accelerating the development of the Company’s Structured Digital Asset Products & Blockchain Payments division. Through Blockchain Fintech, the Company intends to build and launch structured digital asset products and blockchain payments services within Portugal and eventually other jurisdictions.
“The Acquisition will enable us to accelerate and better execute our Blockchain Ecosystem strategy” commented Akshay Sood, Chief Executive Officer of CryptoBlox.
“By integrating Blockchain Fintech’s technology within our Blockchain Ecosystem, we hope to soon be positioned to launch our suite of non-custodial digital asset products,” added Mr. Sood.
Strategy Overview
The Company and Blockchain Fintech are aligned with respect to their focus on user-centric design, simplicity and market-tested functionality. The Company hopes that this focus will encourage all user types to onboard onto its products, irrespective of such user’s prior blockchain know-how. In a similar manner, the Company is exploring a number of solutions designed to help onboard both the banked and unbanked onto the blockchain economy in an efficient and user-friendly manner.
Recognizing that there is significant value in capturing the end-to-end value in blockchain transactions, the Company hopes to innovate not only within the realm of user-driven products, but also within the associated payment networks. This could involve product, application and interface layers, along with the blockchain networks used to implement transactions, being integrated within a singular focal point, which the Company hopes to one day be able to provide through its core product suite.
About Blockchain Fintech Solutions
Blockchain Fintech, is a company specializing in developing blockchain based technologies that help bridge the blockchain adoption gap. With a mission to streamline the transition onto the blockchain economy, Blockchain Fintech pioneers user-friendly payment solutions that redefine the way individuals and businesses currently transact – both locally and internationally. Through their innovative blockchain based payment solutions, Blockchain Fintech is not only revolutionizing traditional payment systems but also catalyzing a broader shift towards both digital and decentralized financial ecosystems. In doing so, they are firmly committed to the principles of accessibility and ease of use, which extends beyond mere functionality, as they prioritize user experience to ensure that individuals of all backgrounds can navigate Blockchain Fintech products confidently and efficiently, while not being expected to understand the complexities of the technologies underlying such products.
Blockchain Fintech is an early-stage pre-revenue company and, accordingly, has not yet prepared financial statements. Notwithstanding, through due diligence, the Company has confirmed that Blockchain Fintech has incurred in excess of $1 million in technology development costs to date.
“Establishing our Structured Digital Asset Products & Blockchain Payments division has been a core part of our Blockchain Ecosystem, especially as the industry is coming up from a whirlwind of bankruptcies related to custodial digital asset platforms over the past two years. The market share of these platforms and products, which at a fundamental level give people back control and ownership, is set to continue increasing over the next five years and we want to be at the forefront of that change and adoption.” concluded Mr. Sood.
On behalf of the Company,
Akshay Sood
Chief Executive Officer
Contact information – info@cryptoblox.ca or call 236-259-0279
About CryptoBlox Technologies Inc.
CryptoBlox Technologies Inc. is a blockchain technology infrastructure company focusing on building out its diversified Blockchain Ecosystem Strategy that consists of Infrastructure & Sustainable Digital Asset Mining, Sustainable Mining Products & Technology, and Structured Digital Asset Products & Blockchain Payments. The Company’s Infrastructure will be based on the value chain that stems from off-grid/alternate energy powered digital asset mining, along with a diversified portfolio of sustainable mining and blockchain fintech products and services enabled by both the Sustainable Mining Products & Technology and Structured Digital Asset Products & Blockchain Payments divisions. The Company will be focused on providing alternate energy solutions to power digital asset mining operations throughout North America – with the first site being in Redwater, Alberta. By using alternative energy sources and state-of-the-art operations techniques, the Company will be positioned to achieve a high degree of financial optionality and long-term operational certainty, which can result in some of the cleanest and lowest-cost digital asset mining operations in the world.
For further information about the Company, please visit https://www.cryptoblox.ca or call 236-259-0279.
Forward-Looking Statements
The information in this news release includes certain information and statements about management’s view of future events, expectations, plans, and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. Forward- looking statements in this news release include, but are not limited to, statements respecting: the Acquisition and the conditions precedent to completion of the same; the Company’s plan to introduce its own structured digital asset products using the License; products that the Company hopes to launch pursuant to the License and through Blockchain Fintech; and the Company’s plans for its blockchain ecosystem, including the development of a Structured Digital Asset Products & Blockchain Payments division, and its ability to execute on the same. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements, or otherwise.
The Canadian Securities Exchange has not reviewed, approved or disapproved the contents of this press release, and does not accept responsibility for the adequacy or accuracy of this release.
